The Monetary Authority of Singapore said in a statement Tuesday that the Swiss private bank showed "serious failures in anti-money laundering controls and improper conduct by senior management" in Switzerland and Singapore.

The bank will have to cease operations in Singapore and pay a penalty of 4.3 million Singapore dollars ($3.12 million) for 14 breaches. These include not filing suspicious transaction reports and alerting the authorities of irregular activities in customer accounts.

Falcon is the second bank to lose its license in connection with investigations into Malaysia's 1MDB fund that have led Singapore to seize many bank accounts, fine banks and charge private bankers.